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One-year Treasury bills currently earn 1.86 percent. You expect that one year from now, one-year Treasury bill rates will increase to 2.45 percent and that,
One-year Treasury bills currently earn 1.86 percent. You expect that one year from now, one-year Treasury bill rates will increase to 2.45 percent and that, two years from now, one-year Treasury bill rates will increase to 2.89 percent. If the unbiased expectations theory is correct, what should the current rate be on three-year Treasury securities?
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